Conservative Leader Pierre Poilievre unveiled a plan on Thursday that promises to save new home buyers up to $100,000 off the cost of a new home in Canada’s biggest cities, aiming to tackle soaring housing prices and restore what he calls the lost dream of homeownership.
Poilievre’s proposal would combine existing Conservative commitments with incentives for municipalities that reduce development charges, delivering significant savings for new home buyers.
Under the plan, the federal sales tax on new homes under $1.3 million would be removed, representing up to $65,000 in savings.
Poilievre has now added a matching incentive for local governments: for every dollar a municipality cuts from its development charges, a Conservative government would reimburse 50%, up to a maximum of $50,000 per home.
When combined, these measures would reduce the total cost of a new home by as much as $115,000.
Poilievre says most buyers in urban markets like the Greater Toronto Area or Vancouver would see about $100,000 in relief.
“After the Lost Liberal Decade that saw housing costs double, it’s time for a new Conservative government that will provide affordable homes for Canadians,” said Poilievre at a news conference in Milton, ON.
“The Liberals have broken the promise that hard work buys a home in a safe neighbourhood. Conservatives will restore it by building more, taxing less, and lowering costs for homebuyers.”
Taxes and development charges currently make up more than 30% of new home costs in Ontario and British Columbia.
Poilievre noted that in Toronto, development charges rose from under $30,000 to nearly $140,000 during what he calls the “Lost Liberal Decade.”
Nationwide, these fees climbed by $27,000 in just two years, with the added expense often passed on to buyers.
Criticizing the Liberals for failing to rein in costs, Poilievre argued that large cheques to municipalities merely encouraged more bureaucratic spending.
Poilievre pointed to Toronto, which received $471 million from the federal government but proceeded to hike development charges by 42%.
That increase coincided with a 39% drop in housing starts.
In Victoria, Poilievre said, charges soared by 258%, as housing starts fell 55%.
During the Liberals’ tenure, with Mark Carney acting as their economic advisor, housing prices grew faster than in any other G7 country, according to Poilievre.
Poilievre contends it now takes longer to save for a down payment than it does to pay off a mortgage, pushing many Canadians out of the market.
According to Poilievre, 80% of Canadians no longer see homeownership as an attainable goal unless one is already wealthy.
Poilievre also took aim at Carney’s recent pledge to help the Liberals build homes.
Poilievre dismissed Carney’s plan as more “big government” that would yield additional paperwork rather than new houses, arguing the Liberals remain out of touch with the needs of Canadians facing a housing crunch.
“Mark Carney doesn’t understand the struggles everyday Canadians face being priced out of their communities,” said Poilievre.
“We can’t afford a fourth Liberal term of government run by out-of-touch elites. Only a new Conservative government will put hard-working Canadians First—For a Change—and restore the promise of homeownership by building more, taxing less, and bulldozing bureaucratic barriers.”
